Issuance strategy

Domestic borrowing

The central government’s borrowing requirement in 2021 is expected to be kr. 247 billion, mainly stemming from redemptions on the short-term issuances built up in 2020 to finance temporary Covid-19 measures, cf. Table. The target for sales of government bonds in 2021 is kr. 125 billion at market value. The remainder of the borrowing requirement will be covered via T-bills and by drawing on the central government’s account.

Borrowing requirement 2021

Borrowing requirementbillion
Net financing requirement12
Social housing19
Redemption bonds etc.62
​Redemption T-bills85
​Redemption commercial papers​70
Borrowing requirement247
Note: Redemption bonds etc. includes redemptions and buy-backs of government bonds, payments from the central government in currency swaps and net purchases of government funds.     

The central government offers a broad list of on-the-run issues in 2021 and issuances will continue to be concentrated in the 2-year and 10-year nominal maturity segments. In the first half of 2021, a new 2- and 10-year nominal bond will be opened with maturity in 2024 and 2031 respectively.

In 2021, the target for T-bills is an outstanding amount of kr. 60 billion by year-end. Two monthly T-bill auctions will be held in 2021. New 12-month T-bills will be opened at the auctions with the first banking day as value date in March, June, September and December. The programme will thus continue to consist of four T-bills expiring within the next 12 months. This contributes to continued flexibility in the issuance policy.

Foreign borrowing

The outstanding amount of commercial papers will be reduced as the temporary covid-19 measures, including deferred tax and VAT and on-lending to LD Pensions in connection with the disbursement of holiday allowances, are phased out.